Principles of marketing

d The technological environment With the beauty needs of today's consumers, instead of going to the store to buy products, consumers can buy online at the website.. In addition, Innisfre

Innisfre Marketin Pla

Lecturer: Nghiem Tan Phong

Group 6 members:

- Dao Minh Huyen

- Cao Van Hieu

- Le Tran Yen Vi

- Nguyen Ha Trung Hau

- Phan My Phung

1 Macro Environment

a) The demography environment

In Vietnam as of early 2017, the age group from 15 to 64 years old accounted for 69.3% of the population across the country The demand for cosmetics is

increasing because the concept of beauty has changed in perception Today, some children aged 15 and over have learned, know what cosmetics are and may have used them And the aunts and uncles under the age of 65, because they always love and want to take care of themselves, should always find and trust reputable

products The interest of both sexes in appearance is increasing, so cosmetics gradually become familiar and indispensable consumer products for people of all ages and classes

- Vietnam Population: 92.7M

- Capital City: Hanoi: 7.5M

- Female: 51% onment

- Age: 20 - 29 (26%)

- Target customer: Age 20 - 29 female

-b) The economic environment

Compared to previous years, the average GDP has increased to $ 2,000 / person, the GDP of the military will increase, which will stimulate spending, increasing many opportunities for businesses to attract stronger customers With such growth momentum, people will have more needs in all areas such as food, clothing and especially in "beautifying" themselves According to a survey in recent years,

"skincare" products are being consumed more and more in numbers that cannot be estimated , and this will be a very capable market, triggering economic

development at home and abroad

c) The natural environment

Vietnam is a country with many favorable geographical locations that can be invested to get raw materials from nature, as our grandparents have a saying

“Vietnam has a golden forest and a silver sea.” Proving that the large area of

agricultural land, sometimes the post-tropical climate, is easy to cultivate pure products Besides, there are many difficult factors causing obstacles such as floods, natural disasters, and droughts that affect investment costs and pollution levels

d) The technological environment

With the beauty needs of today's consumers, instead of going to the store to buy products, consumers can buy online at the website The product will be sent to your home with a short and convenient procedure In addition, Innisfree also applies many modern technology machines to create many quality skincare products,

creating satisfaction and professionalism for consumers

e) The political and social environment

- Political : The beauty product business is one of the industries that is

growing in recent years… The government has issued many resolutions to make changes to create favorable conditions for businesses to invest in

Vietnam On July 1, 2016, the Government issued Decree No 93/2016

ND-CP stipulating conditions for cosmetic production, creating many

advantages for cosmetic manufacturing and trading enterprises However, there have also been many businesses taking advantage of loopholes in the management, inspection, and supervision of the authorities to do business in

a hurry, causing loss of trust for consumers, and affecting consumers

Establish e-government for businesses to have new updates on the law on enterprises

f) The cultural environment

“What skincare products are you using?” - is the door sentence

the mouth of women, and so do many others including men The beauty needs of each individual are increasing and there is no sign of decline Simply find a

product that you can safely use Beauty products without chemicals are harmful to skin and health Therefore, the Innisfree brand was born with the aim of creating beauty products from nature that are not harmful to health and create the best effect for consumers

2 Microenvironment

a) The company

Time back to 2016, the time marked the boom when the new brand "landed"

in the Vietnamese market Right from the opening day of the first store at 257 Hai

Ba Trung, District 3, Ho Chi Minh City In Ho Chi Minh City, innisfree has

received a warm welcome from beauty followers of all ages Everyone in the

family feels expectant and eager, wanting to have the opportunity to "market" the store of the most popular cosmetic brand in this kimchi country A large number of visitors exceeded Innisfree's expectations Success after success, so far, after nearly

3 years of presence, the brand has expanded its connection with customers, up to

20 stores in major cities in Vietnam such as Hanoi, Ho Chi Minh and Nha Trang

Coming to the Vietnamese market, innisfree has quickly built up trust in consumers through many popular product lines In terms of skin care, the most popular is probably the Green Tea, Jeju Volcanic and Cherry Blossom lines In which, Green Tea Seed Serum, Jeju Volcanic Pore Clay Mask, Jeju Cherry

Blossom Tone Up Cream are typical candidates This is exactly the solid pillar, helping to lay the foundation for the long-term development of Innisfree "Island of Freedom" worldwide The common denominator of these 3 lines is that they all converge on all factors: beautiful, benign packaging for all skin types, effectiveness and affordable prices

b) Suppliers

+ Innisfree has rich natural resources from Jeju Island, so there's no shortage of ingredients

+ They have their own raw material factory Thanks to their own factory, they don't seem to have a lot of production costs, so the product price is also cheap and can reach a wide range of customers

+ In addition, this can also make consumers feel secure about the quality of the product

c) Marketing Intermediaries

Innisfree also promotes the management and product introduction program on newspapers, social networking sites such as Facebook, zalo, Instagram

+ Invite famous people to be the brand face of the product and brand influence + Cooperate with many KOLs to produce many interesting and unique content that

is easy to attract customers

+Uses the media to introduce new products

+ Expanding online sales channels as well as websites, connecting new

e-commerce sites such as Tiki, Shoppee, Lazada, etc

d) Competitions

- Small cosmetics stores and online shops utilizing social media: these stores are opened by individual retailers who import a variety of products sold at lower prices

- With this current trend, Innisfree competes with Korean famous brands which have official stores such as Laneige, The Face Shop, The Body Shop, Mamonde,

+ The Body Shop has a range of more than 1200 products, including

cosmetics and make-up in its 2500 franchised stores in 61 countries

+ Laneige: As is well known as one of the most luxury cosmetic brands, Laneige focuses on professional, natural and strong women

+ The Face Shop is a Korean cosmetic retailer owned by LD Household & Healthcare It was established in 2007 and until now, it has more than 2300 stores in 29 countries

+ Mamondeis a Korean mid-end company Together with the famous Amore Pacific Group in Korea Features include product lines extracted from

flowers

e) Promotions & Discounts:

● Give sample

● Member gift, coupon, voucher

● Ambassador: Lee Min Ho, Yoona

● On social media

f) Public

Particularly for the Vietnamese market, in addition to connecting with users

by opening many stores or launching impressive product lines, innisfree also

organizes a series of cohesive activities Typically, the series of innisfree Festa events was first held in Vietnam in 2017 with the participation of "national first love" Yoona; Eco Hankie 2019 campaign with the appearance of Green Point

Corner for customers to own "green" items by redeeming accumulated points In addition, during the 3 years in Vietnam, innisfree has accompanied the Heartbeat Vietnam Foundation (Heartbeat Vietnam), contributing 10% of the revenue of the Holiday Limited Edition Collection product collection and 100% of the revenue of the collection DIY company, providing 24 free heart surgeries for children

g) Customers

Innisfree divides into 2 main groups:

- College students from 15 to 18: With low - income level, they prefer low priced cosmetic products but good quality

- Young people from 18 to 30: This customer group has a higher expectation than college students because their job characteristics always ask them to wear make-up before leaving home Besides, with the age from 18 to 30, those are starting their career with low and middle income Therefore, they would rather have mid-priced products but high quality

3 SWOT analysis

Strengths

1 Establishedfor more than

20 years, with rich operating experience

2 Low and middle price

3 Use Eco- friendly campaigns

4 Organicingredients

5 Wide range of products suitable for different skin types

Weaknesses

1 Low brand recognition +There are many fake products that make consumers worry

2 Low diversification

Opportunities

1 Territorial expansion, the brand now has more than

1610 storesin Korea, China, Japan, Singapore, Malaysia, USA, Canada, Thailand, Indonesia and Vietnam

2 Strengthening brand recognition

3 The domestic economy is growing and people's

Threats

1 Substitute products

2 Product and development cycles

3 Increased pressure from customers and suppliers

income is increasing

4 The potential of the

domestic and foreign

cosmetics industry is still

great

5 Availability of a stable

number of customers,

trusted and supported by

customers throughout the

development process

6 Diverse distribution

channels both online and

offline

7 Vietnamese people’s skin

is quite similar to Korean

people’s skin

8 Foreign brandcosmetics

account for90%

4 Marketing 4Ps:

4Ps Marketing Mix

4.1 Price

- Innisfree’s cheapest product line will be advertised to enhance people’ recognition of low and middle priced products during the first 6 months

- They will arrange their products prices the same as local middle – priced products to meet local people’s needs

4.2 Products Mix

- Innisfree offers skincare, makeup and body care products for all types of skin such as combination skin, sensitive skin, oil skin and so on

Besides, Innisfree products has some special features:

- Natural ingredients such as Jeju green tea, Jeju tea mustard and

gulfweed, Jeju volcano and so on are taken from Jeju which is famous for its unique ecosystem

- Innisfree- branded products use eco – friendly and naturalistic

containers

- Customer services: In order to compete with other rivals in a Vietnam

competitive market or achieve a large market share in a short time, Innisfree should put customers at the heart of what it does Base on customer buying post-purchase behaviors, Innisfree will do the following activities:

+ Providing detailed knowledge and information about a variety of products anytime

+ Using customer databases to identify or reward valuable customers + Resolving customer issues at their first point of contact

+ Training employees to treat customers graciously

+ Sending a thank-you letter not after a customer makes any purchase

or inviting them to contact you with questions, feedbacks

4.3 Promotion

Advertising:

- Making use of celebrities as a representative for its products

- Taking advantage of different sources

Public Relations: Yoona, Lee Min Ho

Sales promotion:

- Innisfree will update about new store openings, product benefits through our social media platforms Innisfree will also conduct ‘like & share’ product giveaways to increase brand awareness Innisfree can create videos on how to use skin care products as well as makeup products like Korean celebrities every month on Youtube

- Using money off coupons or special offers on special occasions

- Launching discount programs each month

For example: discount 15% on customers’ birthdays

- Organize Korean celebrities coming to Vietnam to advertise

Innisfree’s products

hero Green Tea Seed Serum 80ml to accompany with great skin care

4.4 Place

a) Location:

- Stores at Vincom shopping malls: Vincom not only has the biggest market share in Hanoi but also its main customers are young people Therefore, opening stores at Vincom shopping malls help Innisfree access target customers quickly as well as advertise its brand easily

- Small stores will be opened around university campuses where many 20's come and go By doing that, Innisfree can easily access a large number of potential customers because more and more students are concerned about their appearance and they are looking for products suitable for their income level Innisfree is exactly their solution and it

is better if students can find out their solution right outside their

campuses Innisfree can open a store in Chua Lang street where there are 5 universities around there

b) Transport:

- Innisfree has 3 transport projects with a capital value of £3.0 billion The projects listed below are owned across a number of Innisfree managed funds.